Source | Yuan Media Hub

After a wait spanning more than two years, the latest financial data of Evergrande Auto, once hailed as the "fastest-rising star in car manufacturing," has finally come to light.

At 6 a.m. this morning, Evergrande Auto released four overdue financial reports simultaneously: the 2024 annual report, the 2025 interim report, the 2025 annual report, and the 2026 interim report.

To summarize, Evergrande Auto's latest financial reports have unveiled two key insights:

1. Investors are still willing to provide financing to support the company's daily operations and maintain its listing status.

2. The company has officially exited the automobile manufacturing sector and is shifting towards an asset-light business model. It anticipates unveiling a business and operational restructuring plan in the fourth quarter of 2026.

Since submitting its interim report in August 2024, Evergrande Auto, despite being entangled in the bankruptcy liquidation proceedings of Evergrande Group, has kept its true financial picture under wraps.

Now, the real state of affairs at Evergrande Auto has finally been laid bare.

According to the financial reports and data from Tianyancha, over the past two and a half years, Evergrande Auto's total revenue has been meager, amounting to just 75 million yuan, with a net profit attributable to the parent company of 5.562 billion yuan. Notably, the net profit attributable to the parent company in 2024 turned from a loss to a profit of 6.267 billion yuan.

Of course, Evergrande Auto did not generate this profit through actual car sales. The Tianjin Evergrande factory halted production in January 2024, and the revenue primarily stemmed from asset sales.

In 2023, Evergrande Auto's total assets stood at a lofty 34.85 billion yuan, but by 2024, they had plummeted to a mere 280 million yuan, marking a decrease of 34.57 billion yuan. Compared to the net profit attributable to the parent company, this equates to selling off all assets at an 18% discount.

After divesting all its assets, Evergrande Auto is now barely more than a shell company, with a net asset value of -32.2 billion yuan in 2024. This dire situation persisted until the end of June 2026.

As of the end of June 2026, Evergrande Auto's total assets were 182 million yuan, total liabilities were 32.72 billion yuan, and its net value was -32.54 billion yuan.

When Evergrande Auto was founded in January 2019, Xu Jiayin outlined a straightforward 15-word development strategy: "Buy, buy, buy; Merge, merge, merge; Network, network, network; Big, big, big; Good, good, good."

In just two years, Evergrande Auto embarked on a global acquisition spree, acquiring Swedish NEVS, Dutch e-Traction, British Protean, taking a stake in Japanese Kanei New Energy for battery supplies, and hiring 15 world-class designers... thus becoming the domestic "fastest-rising star in car manufacturing."

In August 2020, Evergrande Auto unveiled six new models spanning sedans, SUVs, and MPVs all at once. In February 2021, its market value soared to 670 billion Hong Kong dollars, temporarily surpassing BYD.

Later, the outcome of Evergrande Auto became widely known. Now, examining the latest financial data: since its inception, it has racked up accumulated losses of up to 105.28 billion yuan.

However, the liquidators of Evergrande Group have not entirely abandoned efforts to rescue Evergrande Auto.

Among Evergrande Auto's 16.28 billion yuan in borrowings, the majority of the borrowings, trade, and other payables originate from Evergrande Group and other related parties.

Evergrande Auto is also striving to replenish its operating cash flow, such as by seeking financing arrangements to secure funds, in hopes of achieving an overall restructuring of the debts of Evergrande Group and the company.

Evergrande Auto disclosed that it is currently in negotiations with an investor who has expressed willingness to provide financing to the Group to sustain its basic operations and meet minimum working capital requirements.

It is clear that Evergrande Auto cannot return to car manufacturing.

Therefore, Evergrande Auto completed its exit from automobile manufacturing early on and is contemplating a strategic shift to an asset-light model by leveraging the previously acquired electric vehicle battery and automobile manufacturing-related technologies.

In the first half of this year, Evergrande Auto's revenue was 8.725 million yuan, marking a year-on-year increase of 34%. This growth is attributed to the company's lithium battery trading business, which commenced sales during the period and generated revenue of 8.73 million yuan.

According to Evergrande Auto's plan, the development of the lithium battery trading business trial order is expected to pave the way for the business and operational restructuring plan in the fourth quarter of this year.

Evergrande Auto has also set a final objective: for its two major businesses—technical services and battery trading—to successfully generate operating cash flow and secure additional financing to provide sufficient cash flow for the company to repay debts and sustain operations.

In April 2025, Evergrande Auto was suspended from trading due to its failure to release the 2024 annual report and has remained suspended ever since. According to HKEX rules, if the suspension persists for 18 months until the end of September 2026 and the company does not resume trading, it will face delisting. Just before this deadline, Evergrande Auto released four financial reports at once.

This indicates that Evergrande Auto still harbors hope for a turnaround.

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